Utility over quantities of two goods is given by U(91, 92) = q1 + In q2. Which of the following statements is always true about the demand functions for good 1 and good 2 if consumer faces prices pi and p2 and has income M? The demand function of good 1 does not depend on M. The demand function of good 2 does not depend on M. The demand level of good 1 is always greater than zero. The demand level for good 2 is always greater than the demand level for good 1. None of the other statements are true.
Utility over quantities of two goods is given by U(91, 92) = q1 + In q2. Which of the following statements is always true about the demand functions for good 1 and good 2 if consumer faces prices pi and p2 and has income M? The demand function of good 1 does not depend on M. The demand function of good 2 does not depend on M. The demand level of good 1 is always greater than zero. The demand level for good 2 is always greater than the demand level for good 1. None of the other statements are true.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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